Yield on 10-Year
Treasury Note
Hits 14-Month Low

By

Mark Whitehouse Staff Reporter of THE WALL STREET JOURNAL

Updated June 2, 2005 12:01 a.m. ET

The yield on the 10-year Treasury note, the foundation for long-term interest rates in the U.S., hit a 14-month low in heavy trading after a Federal Reserve official suggested the central bank might stop raising short-term interest rates sooner than expected.

The shift in long-term interest rates indicates that the bond market has come to terms with the prospect of steady, if not stellar, economic growth. If they stick, the low rates also could mean renewed demand for riskier assets like junk, or high-yield, corporate...